THE ECONOMIC IMPACT OF SPECIAL EVENTS: A CASE STUDY OF THE MOTHER CITY QUEER PROJECT (MCQP) 2009 by CHRISTIAAN HATTINGH Dissertation submitted in fulfilment of the requirements of the degree Magister Technologiae: Tourism and Hospitality Management in the Department of Tourism and Events of the Faculty of Management Sciences at the Cape Peninsula University of Technology Supervisor: Professor JP Spencer Co-supervisor: Ms E Venske Cape Town Date submitted: May 2011 CPUT Copyright Information The dissertation may not be published either in part (in scholarly, scientific or technical journals), or as a whole (as a monograph), unless permission has been obtained from the university
I, Christiaan Hattingh, ID: 8606275004089, declare that the contents of this dissertation represent my own unaided work, and that the dissertation has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the Cape Peninsula University of Technology.
Cape Town, which is known as the Mother City of South Africa, is regarded as one of the most beautiful cities in the world: -‘heaven at the tip of Africa’, and was voted by the premier gay travel guide, Spartacus International Gay Guide, as one of the top five gay travel destinations in the world. The well-publicised myth of gays as DINKs who need somewhere to spend their above average disposable income has led to the vigorous courting of the gay niche by a variety of organisations that seek new markets. However, South Africa, an emerging destination, is merely beginning to understand niche markets. The research was motivated by limited market intelligence about the economic impact and changes in inbound niche markets, especially with regard to the gay market in Cape Town. In order for Cape Town to remain successful in attracting the international gay market, Cape Town’s tourism planners, marketers and local community should be continuously reminded about the economic worth of gay tourists, as a weak rand and high standard of gay facilities make the City attractive for gay visitors who bring foreign currencies. Understanding the economic impact of gay tourism by using the 2009 MCQP as a case in reference is, therefore, of paramount importance for Cape Town marketers to ensure that they target the gay market effectively at present and in future. The purpose of the study was to analyse the economic impact of the 2009 MCQP on the local economy by translating the total sales effect obtained by multiplying direct sales with appropriate multipliers, into an analytical framework, namely the ‘System of equations for estimating local economic impact.’ The methodology consisted of two different types of questionnaires, (1) a visitor questionnaire, and (2) a business questionnaire. The visitor questionnaires were interviewer-administered, and a destination-based survey was conducted, where interviews were held on-site during the festival. The visitor questionnaire determined primarily festival-related expenses that were undertaken. Four hundred and twenty (420) questionnaires were distributed among festinos of which 396 were useful. Business questionnaires were circulated after the MCQP. The main aim of the business questionnaire was to determine the benefits, if any, that firms derived from the festival and, from an economic impact point of view, to determine the magnitude of leakages from the Cape Town area. A majority of business questionnaires were completed by means of personal interviews, but telephonic and email interviews were also used. Stoker’s formula was used to determine the sample size,
which totalled 41, while 39 responded. An estimated 2240 people attended the MCQP in 2009. This was a sharp decline compared to previous years, as the 2010 MCQP had an attendance of 7462 festinos. Visitors at the 2009 MCQP spent an average of R 7785...
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